Globalization Replies

Key Term and Why You are Interested in It

            The key term of “Business Manners and Customs” is one that I am drawn to because of how impactful the respect and understanding of another’s culture can translate into trust between both cultures. In particular with international business matters, trust can be a challenge to obtain. A business executive’s understanding of a foreign nation’s culture, customs, and etiquette can help to generate and enforce that sense of trust, which helps to promote favorable business transactions. Instead of viewing cultural differences as a barrier or weakness in business dealings, business executives could view these cultural differences as potentially advantageous to achieving success. Because of how advantageous this knowledge could be for a business executive, it only deepens my intrigue as a future business executive to research the topic further. 

Explanation of the Key Term

            A business executive’s understanding of cultural diversity is a critical factor for the success of a global business professional. When engaging in business dealings with another nation, it would be prudent that a global business professional understand and respect the following information: the language, population, cultural heritage, religion, the do’s and don’ts involving dress, clothing, gestures, body language, behavior related to dining, gift giving, negotiations, customs, and communications regarding greetings, introductions, and conversational guidelines (Satterlee, 2019). Failing to understand and respect the other business person’s culture and customs can potentially cause a business deal to fall through. An example can be explained referencing the Eastern Indian culture and customs. When at a business dinner in the country of India, it is a prudent decision for an American business professional to refrain from eating a steak or hamburger during the dinner. This is because the cow is held in high regard in Indian culture as a sacred animal and ordering any beef dish could be considered as a sign of disrespect.

Major Article Summary

            The article to be discussed is entitled “International business negotiations in Brazil”. This article discusses how Brazil’s complex culture and ambiguous business manners, customs, and behaviors have made it difficult for other nations to gain their trust and engage in business negotiations. As previously discussed, while trust is essential to obtain when engaging in national business matters, obtaining that trust can be easier said than done when the country’s customs and preferences in negotiations are more vague than they are transparent. Brazil, along with the countries of Russia, India, China, and South Africa have been regarded by global business person’s as the most difficult nations for foreign nations to engage in business with (Fang, Schaumburg, Fjellström, 2017).

            Since the liberation of its economy in the 1990s, it has been discussed that the ambiguity of the Brazilian culture is a “means of survival” and that the secret of correct interpretation of Brazilian culture lies in studying “what is between things”. In this context, a correct understanding of the Brazilian negotiation style is both fundamental and timely. The article attributed the complexities regarding the customs and behaviors of individual Brazilian business negotiators due to the multiple overlapping cultural influences. The three major cultural influences in Brazil are Portuguese, indigenous Indian, and African. It was found through the research that each individual Brazilian business negotiator had contrasting and individual negotiating styles. Those styles were identified as “The African Capoeirista” style, “The Portuguese Bureaucrat” style, and “The Indigenous Warrior” style of negotiating. Each style was starkly different and difficult to predict in advance what the negotiating style a Brazilian business person will use in international business discussions. Unlike other nations where their culture, customs, and behaviors have been more clearly identified, Brazil’s melting pot of contrasting cultural influences have made it more difficult to pinpoint what exact business manners, customs and behaviors will be correct in relaying cultural respect and obtaining the trust of individual Brazilian business leaders (Fang, Schaumburg, Fjellström, 2017).

Discussion

            This article was chosen to specifically highlight that there can actually be many complexities and barriers to understanding a culture’s business manners and customs, which could be an underlying contribution as to why many international business dealings do not generate successful business outcomes. The article relates to the assigned module of “Business Manners and Customs” because it takes a less literal approach to the topic, such as with examples of common manners and customs in business negotiations for other countries. Instead it highlights the complexities and barriers to actually being a successful global business person. Understanding a country’s business manners and customs may not be as simple and easy as one would like to believe.

           While it was mentioned that the understanding of these business manners and customs can be advantageous, it is a lot easier said than done. While any American business person can study the stereotypical do’s and don’ts regarding their appearances and general behaviors when engaging with foreign business persons, culture is far more complex than it is sometimes credited. In cultures like Brazil where they host a diverse populous of backgrounds, it can be considered impossible for a global business person to thoroughly prepare for business negotiations when different Brazilians have different cultural backgrounds and views on social customs related to it.

           Additional research articles that were studied related less to literal examples of individual countries’ business manners and customs and more on the topic of how more complex pinpointing these business manners and customs are in culturally diverse nations. For example, one of the articles that was researched discussed the importance of religiosity in Indian global business and that many Indian business persons’ choose to make ethical business decisions based on their religious values. The point that was emphasized in this article was that India is culturally rich with a diverse populous that adhere to multiple religions, such as Buddhism, Hinduism, Jainism, Sikhism, and Christianity (Chan & Ananthram, 2019).

           This cultural and religious diverseness parallels the central principle of the primary article in that culturally diverse countries may be more difficult to narrow down their business manners and social customs because each of how culturally diverse different countries can be. This may also be one of the reasons why India is considered one of the more difficult countries to engage in international business with, as previously mentioned. Furthermore, additional research found that religious diversity can add complexity to behavioral uncertainty and information asymmetry between foreign business matters and local target firms (Kwow, Meschi, & Bertrand, 2020). This further reinforces the main point that culturally diverse nations can create confusion on what social customs and etiquette is appropriate for global business negotiations.

           Further research has focused on cultural differences and how those differences can act as barriers to successful international business. The Journal of International Business Studies shared the perspective that cultural differences between allianced business partners can challenge the development of successful relationships. These challenges stem partially from the lack of shared norms and values, which can impair effective communication and knowledge sharing in joint ventures. These problems, in turn, have been found to lead to higher alliance problems (Stahl & Tung, 2015). This perspective is considered to be a negative in tone when compared to the original idea that another country’s culture and social customs can be considered advantageous to the global business professional when it is understood and applied appropriately.

           Related to this content, additional research was made regarding the importance of communication, which was cited as a major point of knowledge for the global business professional to understand. According to the article, it was expressed that communication is considered to be at the core of most international business operations. Organizations are created, managed, led, and dissolved through communication, which plays a major role in the exchange of knowledge, the development and maintenance of relationships, the negotiation of deals, and the establishment and preservation of partnerships. It is considered to be a critical factor in all multinational corporations (Szkudlarek, 2020). This final article was selected as summation to the greater point that without the use of effective communication and a clear understanding of another culture’s social customs, the likelihood of successful business outcomes is almost nonexistent.

 

References

Chan, C., & Ananthram, S. (2019). Religion-based decision making in indian multinationals: A multi-faith study of ethical virtues and mindsets. Journal of Business Ethics, 156(3), 651-677. http://dx.doi.org/10.1007/s10551-017-3558-7

 

Fang, T., Schaumburg, J., Fjellström, D. (2017). International business negotiations in Brazil. The Journal of Business & Industrial Marketing, 32(4), 591-605. http://dx.doi.org/10.1108/JBIM-11-2016-0257

 

Kwok, D. W. P., Meschi, P. X., & Bertrand, O. (2020). In CEOs we trust. When religion matters in cross-border acquisitions. The case of a multifaith country. International Business Review, 29(4), 1-13. https://doi.org/10.1016/j.ibusrev.2020.101705

 

Satterlee, B. (2019). International Business with Biblical Worldview. McGraw-Hill. 

 

Stahl, G. K., & Tung, R. L. (2015). Towards a more balanced treatment of culture in international business studies: The need for positive cross-cultural scholarship. Journal of International Business Studies, 46(4), 391-414. http://dx.doi.org/10.1057/jibs.2014.68

 

Szkudlarek, B., Osland, J. S., Nardon, L., & Zander, L. (2020). Communication and culture in International business – Moving the field forward. Journal of World Business, 55(6), 1-9. https://doi.org/10.1016/j.jwb.2020.101126